Exit and Growth Strategies for Middle Market Businesses

The report below gives a good overview of the first quarter M&A activity in the Aviation, Aerospace and Defense Industry Sector. M&A activity for North American based target companies in the Aerospace and Defense sector for Q4 2017 included 15 closed deals, according to data published by industry data tracker FactSet.

Boeing gave a strong forecast for 2018 and expects to deliver 810 to 815 commercial aircraft this year. That’s an increase of at least 47 from 2017, when it set a company record of 763. In the quarter ended Dec. 31, Boeing’s net income nearly doubled to $3.13 billion, or $5.18 per share, from $1.63 billion, or $2.59 per share, a year ago. Fourth-quarter revenue grew to $25.37 billion in 2017, a 9 percent increase from the same period the year prior.

Industry Indicators

US corporate profits, which affect airline traffic and demand for new commercial aircraft, rose 5.4% in the third quarter of 2017 compared to the same period in 2016.

US durable goods manufacturers’ shipments of nondefense aircraft and parts, an indicator of demand for aerospace products and parts, fell 3.5% year-to-date in December 2017 compared to the same period in 2016.

US durable goods manufacturers’ shipments of military aircraft and parts, an indicator of demand for aerospace products and parts for military use, rose 4.4% year-to-date in December 2017 compared to the same period in 2016.

US steel mill product prices, an indicator of commodity steel costs for aerospace products, rose 5.3% in January 2018 compared to the same month in 2017.

The Middle Market Pulse, an executive brief, provides M&A market insight for c-level management, shareholders and their professional advisors. To receive this free monthly report by email, please complete the following form: